IPSASB Meeting (September 2019) Agenda Item 1.5 IPSAS–IFRS Alignment1 Dashboard2

CONTENTS

Table 1 – IPSAS/RPG and Equivalent IFRS/PS—Summary ...... 2 Table 2 – IFRS/PS with no Equivalent IPSAS/RPG ...... 3 Table 3 – IPSAS and Equivalent IFRS—Detail ...... 4 Table 4 – RPG and Equivalent PS—Detail ...... 17 Table 5 – Summary of IASB Work Plan as at May 28, 2019 ...... 18

ALIGNMENT STATUS LEGEND

Degree updated

for relevant IFRS changes

Degree of public sector specificity Step in Process for Degree of Public Sector Specificity Reviewing and Modifying Degree Updated for Relevant IFRS Changes IASB Documents Updated IPSAS with minor public sector guidance added (public sector terminology and minor modifications) 4 Relevant IFRS changes to be considered in current project IPSAS with public sector guidance added (public sector terminology and modifications) 3 Relevant IFRS changes not yet considered without active alignment project Public sector specific IPSAS with some IFRS guidance 5 New IFRS to be considered in current project

Public sector specific IPSAS N/A New IFRS not yet considered without active alignment project

1 The term ‘alignment’ refers to the formal processes the IPSASB follows to assess the applicability of IFRS and/or GFS requirements when developing pronouncements which faithfully represent the economic substance of transactions in the public sector. Through these processes the IPSASB aims to reduce unnecessary differences with these sources of guidance when they can also be applied in the public sector context. 2 Staff assessment

Key: IPSAS = International Public Sector Accounting Standard; RPG = Recommended Practice Guideline; IFRS = International Financial Reporting Standard; IAS = International Accounting Standard; PS = Practice Statement

Prepared by: João Fonseca (August 2019) Page 1 of 19 IPSAS–IFRS Alignment Dashboard IPSASB Meeting (September 2019)

Table 1 – IPSAS/RPG and Equivalent IFRS/PS—Summary

IPSAS/RPG IFRS/PS Status IPSAS/RPG IFRS/PS Status IPSAS/RPG IFRS/PS Status 1, Presentation of Financial 36, Investments in Associates and IAS 1 20, Related Party Disclosures IAS 24 IAS 28 Statements Joint Ventures 21, Impairment of Non-Cash- 2, Cash Flow Statements IAS 7 IAS 36 37, Joint Arrangements IFRS 11 Generating Assets 3, Accounting Policies, Changes 22, Disclosure of Financial 38, Disclosure of Interests in Other in Accounting Estimates and IAS 8 Information about the General − IFRS 12 Entities Errors Government Sector 4, The Effects of Changes in 23, Revenue from Non-Exchange IAS 21 − 39, Employee Benefits IAS 19 Foreign Exchange Rates Transactions (Taxes and Transfers) 24, Presentation of Budget 5, Borrowing Costs IAS 23 − 40, Public Sector Combinations IFRS 3 Information in Financial Statements 9, Revenue from Exchange 26, Impairment of Cash-Generating IFRS 9, IAS 18 IAS 36 41, Financial Instruments Transactions Assets IFRIC 16 10, Financial Reporting in IAS 29 27, Agriculture IAS 41 42, Social Benefits − Hyperinflationary Economies 28, Financial Instruments: IAS 32, 11, Construction Contracts IAS 11 Presentation IFRIC 2

29, Financial Instruments: IAS 39, Financial Reporting under the Cash 12, Inventories IAS 2 − Recognition and Measurement IFRIC 16 Basis of Accounting 30, Financial Instruments: 13, Leases IAS 17 IFRS 7 Disclosures 14, Events after the Reporting IAS 38, RPG 1, Reporting on the Long-Term IAS 10 31, Intangible Assets − Date SIC 32 Sustainability of an Entity’s Finances PS 1 32, Service Concession IFRIC 12, SIC RPG 2, Financial Statement 16, Investment Property IAS 40 Management Arrangements: Grantor 29 Discussion and Analysis Commentary 17, Property, Plant, and 33, First-time Adoption of Accrual RPG 3, Reporting Service IAS 16 IFRS 1 − Equipment Basis IPSASs Performance Information

18, Segment Reporting IAS 14 34, Separate Financial Statements IAS 27

19, Provisions, Contingent 35, Consolidated Financial IAS 37 IFRS 10 Liabilities and Contingent Assets Statements

Note: The IPSASB views the Cash Basis IPSAS as an important stepping stone on the journey to full accrual accounting rather than an end in itself. Agenda Item 1.5 Page 2 of 19 IPSAS–IFRS Alignment Dashboard IPSASB Meeting (September 2019) Table 2 – IFRS/PS with no Equivalent IPSAS/RPG1 2 IFRS Status Comments IFRS (IAS) / PS Status Comments Entities reporting on IPSAS basis Entities reporting on IPSAS IFRS 2 Share-based Payment generally do not give share-based IAS 12 Income Taxes basis generally do not pay payment compensation. income taxes. The IPSASB will aim to consider IFRS 5 as staff and IPSASB resources IFRS 5 Non-current Assets Held for Sale and become available. IAS 20 Accounting for Government Grants and Being considered through Discontinued Operations Disclosure of Government Assistance IPSASB Revenue project. The IPSASB will consider issues in the IPSASB Measurement project.

Potential connections with project on The IPSASB may consider IFRS 6 Exploration for and Evaluation of IAS 26 Accounting and Reporting by Retirement Natural Resources. Could consider IAS 26 as staff and IPSASB Mineral Resources Benefit Plans inclusion in scoping phase. resources become available. The IPSASB may consider IFRS 8 as Public sector entities IFRS 8 Operating Segments staff and IPSASB resources become IAS 33 Earnings per Share generally do not issue available. equity. Limited interest given current priority to get IFRS 13 Fair Value Measurement IPSASB Measurement project IAS 34 Interim Financial Reporting governments onto accrual- based end year reporting. The IPSASB has yet to consider this Practice Monitoring development of ongoing Practice Statement 2: Making Materiality IFRS 14 Regulatory Deferral Accounts Statement. IPSASB staff IASB project Rate-regulated Activities. Judgements issued a Questions and Answers on Materiality.

IFRS 15 Revenue from Contracts with IPSASB Revenue project Customers

IFRS 16 Leases IPSASB Leases project

Option to use IFRS 17 directly IFRS 17 Insurance Contracts included in IPSAS 42, Social Benefits.

1 Staff assessment 2 Consequential amendments from IFRS with purple and white legend will only be considered if the IPSASB undertakes the project.

Alignment Status: Being addressed in an active project. Possible project for consideration in conjunction with an active project. Not in current IPSASB work plan. Not relevant to the entities reporting on IPSAS basis.

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Table 3 – IPSAS and Equivalent IFRS—Detail

IPSAS IFRS Status Main Public Sector Differences Relevant IFRS Amendments not yet Considered Presentation of Financial Statements

IPSAS 1 IAS 1 • IPSAS 1 requires the presentation of a statement showing all changes in Active Alignment Project (Revised (Revised net assets/equity. Consequential amendments from IFRS 13 Fair Value Measurement, IFRS December December • IPSAS 1 does not explicitly preclude the presentation of items of 15 Revenue from Contracts with Customers, and IFRS 16 Leases. 2006) 2003) revenue and expense as extraordinary items, either on the face of the Limited Scope Review of the Conceptual Framework: statement of financial performance or in the notes. October 2018 – Definition of Material (Amendments to IAS 1 and IAS 8) • IPSAS 1 uses different terminology.

During the development of the Conceptual Framework the IPSASB decided not to include “other resources” and “other obligations” as elements of

financial statements (see paragraphs BC5.48–BC5.56 of the Conceptual Framework). Therefore, transactions where the IASB uses the term “other comprehensive income” in IPSASB literature is presented in net assets/equity.

March 2007 – Consequential amendments from Revised IAS 23 Borrowing Costs September 2007 – IAS 1 Presentation of Financial Statements – Revised New public sector specific projects prioritized for initial research and version of IAS 1 which includes the notion of comprehensive income was not scoping adopted in IPSAS 1. Presentation of Financial Statements in the Public Sector. May 2010 – Improvements to IFRSs June 2011 – Presentation of Items of Other Comprehensive Income (Amendments to IAS 1) June 2014 – Consequential amendments from Agriculture: Bearer Plants (Amendments to IAS 16 and IAS 41) December 2014 – Disclosure Initiative (Amendments to IAS 1) January 2016 – Consequential amendments from Disclosure Initiative (Amendments to IAS 7)

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Table 3 – IPSAS and Equivalent IFRS—Detail IPSAS IFRS Status Main Public Sector Differences Relevant IFRS Amendments not yet Considered Cash Flow Statements

IPSAS 2 IAS 7 • IPSAS 2 contains a different set of definitions. Active Alignment Project (May 2000) (December • IPSAS 2 encourages disclosure of a reconciliation of surplus or deficit to Consequential amendments from IFRS 16 Leases. 1992) operating cash flows in the notes to the financial statements. No Current Alignment Project • IPSAS 2 uses different terminology. Consequential amendments from IFRS 8 Operating Segments. March 2007 – Consequential amendments from Revised IAS 23 Borrowing New public sector specific projects prioritized for initial research and Costs scoping September 2007 – Consequential amendments from IAS 1 Presentation of Presentation of Financial Statements in the Public Sector. Financial Statements

Accounting Policies, Changes in Accounting Estimates and Errors

IPSAS 3 IAS 8 • IPSAS 3 contains a different set of definitions of technical terms from Active Alignment Project (Revised (Revised IAS 8. Consequential amendments from IFRS 13 Fair Value Measurement. December December • IPSAS 3 does not require disclosures about adjustments to basic or 2006) 2003) Limited Scope Review of the Conceptual Framework: diluted earnings per share. October 2018 – Definition of Material (Amendments to IAS 1 and IAS 8) • IPSAS 3 uses different terminology.

March 2007 – Consequential amendments from Revised IAS 23 Borrowing Costs No Current Alignment Project September 2007 – Consequential amendments from IAS 1 Presentation of Financial Statements N/A

The Effects of Changes in Foreign Exchange Rates

IPSAS 4 IAS 21 IPSAS 4 uses different terminology. Active Alignment Project (Revised (Revised Consequential amendments from IFRS 13 Fair Value Measurement and April 2008) 2003 ad IFRS 16 Leases. amended in September 2007 – Consequential amendments from IAS 1 Presentation of 2005) Financial Statements No Current Alignment Project June 2011 – Consequential amendments from Presentation of Items of Other Comprehensive Income (Amendments to IAS 1) N/A

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Table 3 – IPSAS and Equivalent IFRS—Detail IPSAS IFRS Status Main Public Sector Differences Relevant IFRS Amendments not yet Considered Borrowing Costs

IPSAS 5 IAS 23 IPSAS 5 uses different terminology. Active Alignment Project (May 2000) (Revised Consequential amendments from IFRS 16 Leases. December 1993) March 2007 – Revised IAS 23 Borrowing Costs that eliminated the option of immediate recognition of borrowing costs as an expense. No Current Alignment Project May 2008 – Improvements to IFRSs N/A June 2014 – Consequential amendments from Agriculture: Bearer Plants (Amendments to IAS 16 and IAS 41)

Revenue from Exchange Transactions

IPSAS 9 IAS 18 • The title of IPSAS 9 refers exchange transactions. Active Alignment Project (July 2001) (Revised • IPSAS 9 uses different terminology. May 2014 – IFRS 15 Revenue from Contracts with Customers replaces IAS December 18 1993) No Current Alignment Project N/A

Financial Reporting in Hyperinflationary Economies

IPSAS 10 IAS 29 • IPSAS 10 does not include guidance on the restatement of current Fully updated. (July 2001) (Reformatted financial statements. 1994) • IPSAS 10 uses different terminology.

September 2007 – Consequential amendments from IAS 1 Presentation of Financial Statements May 2008 – Improvements to IFRSs

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Table 3 – IPSAS and Equivalent IFRS—Detail IPSAS IFRS Status Main Public Sector Differences Relevant IFRS Amendments not yet Considered Construction Contracts

IPSAS 11 IAS 11 • IPSAS 11 includes binding arrangements that do not take the form of a Active Alignment Project (July 2001) (Revised legal contract. May 2014 – IFRS 15 Revenue from Contracts with Customers replaces IAS December • IPSAS 11 includes non-cost and noncommercial contracts within the 18 1993) scope of the Standard. No Current Alignment Project • IPSAS 11 uses different terminology. N/A March 2007 – Consequential amendments from IAS 23 Borrowing Costs September 2007 – Consequential amendments from IAS 1 Presentation of Financial Statements

Inventories

IPSAS 12 IAS 2 • IPSAS 12 requires that where inventories are acquired through a non- Active Alignment Project (Revised (Revised exchange transaction, their cost is their fair value as at the date of Consequential amendments from IFRS 13 Fair Value Measurement, IFRS December December acquisition. 15 Revenue from Contracts with Customers, and IFRS 16 Leases. 2006) 2003) • IPSAS 12 requires that where inventories are provided at no charge or No Current Alignment Project for a nominal charge, they are to be valued at the lower of cost and current replacement cost. Consequential amendments from IFRS 8 Operating Segments. • IPSAS 12 uses different terminology.

Leases

IPSAS 13 IAS 17 • IPSAS 13 has additional implementation guidance that illustrates the Active Alignment Project (Revised (Revised classification of a lease, the treatment of a finance lease by a lessee, the January 2016 – IFRS 16 Leases replaces IAS 17 December December treatment of a finance lease by a lessor, and the calculation of the

2006) 2003) interest rate implicit in a finance lease. No Current Alignment Project • IPSAS 13 uses different terminology. Consequential amendments from IFRS 5 Non-current Assets Held for Sale and Discontinued Operations.

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Table 3 – IPSAS and Equivalent IFRS—Detail IPSAS IFRS Status Main Public Sector Differences Relevant IFRS Amendments not yet Considered Events After the Reporting Date

IPSAS 14 IAS 10 • IPSAS 14 uses different terminology and different title. Active Alignment Project (Revised (Revised • IPSAS 14 notes that where the going concern assumption is no longer Consequential amendments from IFRS 13 Fair Value Measurement. December December appropriate, judgment is required in determining the impact of this 2006) 2003) No Current Alignment Project change on the carrying value of assets and liabilities recognized in the financial statements (paragraph 22). Consequential amendments from IFRS 5 Non-current Assets Held for Sale and Discontinued Operations September 2007 – Consequential amendments from IAS 1 Presentation of Financial Statements

Investment Property

IPSAS 16 IAS 40 • IPSAS 16 requires that investment property initially be measured at cost Active Alignment Project (Revised (Revised and specifies that where an asset is acquired for no cost or for a nominal Consequential amendments from IFRS 13 Fair Value Measurement, IFRS December December cost, its cost is its fair value as at the date of acquisition. 15 Revenue from Contracts with Customers, and IFRS 16 Leases. 2006) 2003) • IPSAS 16 uses different terminology.

September 2007 – Consequential amendments from IAS 1 Presentation of Financial Statements No Current Alignment Project Consequential amendments from IFRS 5 Non-current Assets Held for Sale and Discontinued Operations,

Property, Plant, and Equipment

IPSAS 17 IAS 16 • Under IPSAS 17 revaluation increases and decreases are offset on a Active Alignment Project (Revised (Revised class of assets basis. Consequential amendments from IFRS 13 Fair Value Measurement, IFRS December December • IPSAS 17 states that where an item is acquired at no cost, or for a 15 Revenue from Contracts with Customers, and IFRS 16 Leases. 2006) 2003) nominal cost, its cost is its fair value as at the date it is acquired. No Current Alignment Project • IPSAS 17 uses different terminology. Consequential amendments from IFRS 5 Non-current Assets Held for Sale and Discontinued Operations. March 2007 – Consequential amendments from IAS 23 Borrowing Costs September 2007 – Consequential amendments from IAS 1 Presentation of Financial Statements

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Table 3 – IPSAS and Equivalent IFRS—Detail IPSAS IFRS Status Main Public Sector Differences Relevant IFRS Amendments not yet Considered Segment Reporting

IPSAS 18 IAS 14 • IPSAS 18 defines segments differently from IAS 14. Active Alignment Project (June 2002) (Revised • IPSAS 18 does not require the disclosure of segment result. IPSAS 18 N/A 1997) encourages, but does not require, the disclosure of significant non-cash No Current Alignment Project revenues that are included in segment revenue, segment depreciation, November 2006 – IFRS 8 Operating Segments replaces IAS 14 Segment and other non-cash expenses or segment cash flows as required by IPSAS 2, Cash Flow Statements. Reporting • IPSAS 18 uses different terminology.

September 2007 – Consequential amendments from IAS 1 Presentation of Financial Statements

Provisions, Contingent Liabilities and Contingent Assets

IPSAS 19 IAS 37 • IPSAS 19 uses different terminology. Active Alignment Project (October (September • The scope of IPSAS 19 clarifies that it does not apply to provisions and Consequential amendments from IFRS 15 Revenue from Contracts with 2002) 1998) contingent liabilities arising from social benefits provided by an entity for Customers, IFRS 16 Leases, and IFRIC 21 Levies. which it does not receive consideration that is approximately equal to the No Current Alignment Project value of the goods and services provided directly in return from recipients of those benefits. However, if the entity elects to recognize Consequential amendments from IFRS 5 Non-current Assets Held for Sale provisions for social benefits, IPSAS 19 requires certain disclosures in and Discontinued Operations. this respect.

September 2007 – Consequential amendments from IAS 1 Presentation of Financial Statements

Related Party Disclosures

IPSAS 20 IAS 24 • IPSAS 20 uses different terminology, and has a different scope and Active Alignment Project (October (Reformatted structure. N/A 2002) 1994) No Current Alignment Project November 2009 – Revised IAS 24 Related Party Disclosures September 2007 – Consequential amendments from IAS 1 Presentation of Financial Statements

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Table 3 – IPSAS and Equivalent IFRS—Detail IPSAS IFRS Status Main Public Sector Differences Relevant IFRS Amendments not yet Considered Impairment of Non-Cash-Generating Assets

IPSAS 21 IAS 36 • IPSAS 19 uses different terminology. Active Alignment Project (December (Revised • IPSAS 21 deals with the impairment of non-cash-generating assets of Consequential amendments from IFRS 13 Fair Value Measurement and 2004) March 2004) public sector entities, while IAS 36 deals with the impairment of cash- IFRS 15 Revenue from Contracts with Customers. generating assets of profit-oriented entities. IPSAS 26 deals with the No Current Alignment Project impairment of cash-generating assets of public sector entities. Consequential amendments from IFRS 5 Non-current Assets Held for Sale September 2007 – Consequential amendments from IAS 1 Presentation of and Discontinued Operations and IFRS 8 Operating Segments. Financial Statements

Disclosure of Financial Information about the General Government Sector

IPSAS 22 − Not applicable. Not applicable. (December 2006)

Revenue from Non-Exchange Transactions (Taxes and Transfers)

IPSAS 23 − Not applicable. Not applicable. (December 2006)

Presentation of Budget Information in Financial Statements

IPSAS 24 − Not applicable. Not applicable. (December 2006)

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Table 3 – IPSAS and Equivalent IFRS—Detail IPSAS IFRS Status Main Public Sector Differences Relevant IFRS Amendments not yet Considered Impairment of Cash-Generating Assets

IPSAS 26 IAS 36 • IPSAS 26 uses different terminology. Active Alignment Project (February (Revised • In IPSAS 26, a forced sale is not a reflection of fair value less costs to Consequential amendments from IFRS 13 Fair Value Measurement and 2008) March 2004) sell. IFRS 15 Revenue from Contracts with Customers. • IPSAS 26 includes requirements and guidance dealing with the No Current Alignment Project redesignation of assets from cash-generating to non-cash-generating Consequential amendments from IFRS 5 Non-current Assets Held for Sale and non-cash-generating to cash-generating. and Discontinued Operations and IFRS 8 Operating Segments. September 2007 – Consequential amendments from IAS 1 Presentation of Financial Statements

Agriculture

IPSAS 27 IAS 41 • IPSAS 27 uses different terminology. Active Alignment Project (December (Amended • The definition of “agricultural activity includes transactions for the Consequential amendments from IFRS 13 Fair Value Measurement and 2009) December distribution of biological assets at no charge or for nominal amount. IFRS 16 Leases. 2008) • The scope section clarifies that biological assets held for the provision or No Current Alignment Project supply of services are not addressed in this Standard. N/A • IPSAS 27 contains requirements for the measurement at initial recognition, and at each reporting date, of biological assets acquired through a non-exchange transaction.

Financial Instruments: Presentation

IPSAS 28 IAS 32 • IPSAS 28 uses different terminology. Active Alignment Project (January (Amended • IPSAS 28 contains additional Application Guidance on when assets and Consequential amendments from IFRS 13 Fair Value Measurement, IFRS 2010) up to liabilities arising from non-exchange revenue transactions are financial 15 Revenue from Contracts with Customers, and IFRS 16 Leases. December assets or financial liabilities. 2008) No Current Alignment Project IFRIC 2 • IPSAS 28 contains additional Application Guidance dealing with the N/A (Amended identification of arrangements that are, in substance, contractual. up to July 2014) September 2007 – Consequential amendments from IAS 1 Presentation of Financial Statements June 2011 – Consequential amendments Presentation of Items of Other Comprehensive Income (Amendments to IAS 1)

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Table 3 – IPSAS and Equivalent IFRS—Detail IPSAS IFRS Status Main Public Sector Differences Relevant IFRS Amendments not yet Considered Financial Instruments: Recognition and Measurement

IPSAS 29 IAS 39 • IPSAS 29 uses different terminology. Active Alignment Project (January (Amended • IPSAS 29 contains additional application guidance to deal with Consequential amendments from IFRS 13 Fair Value Measurement, IFRS 2010) up to concessionary loans and financial guarantee contracts entered into at nil 15 Revenue from Contracts with Customers, and IFRS 16 Leases. December or nominal consideration. 2008) No Current Alignment Project • Principles from IFRIC 9, Reassessment of Embedded Derivatives and IFRIC 16 N/A (Amended IFRIC 16 Hedges of a Net Investment in a Foreign Operation have been up to May included as authoritative appendices to IPSAS 29. 2011) September 2007 – Consequential amendments from IAS 1 Presentation of Financial Statements

Financial Instruments: Disclosure

IPSAS 30 IFRS 7 • IPSAS 30 uses different terminology. Active Alignment Project (January (Amended • IPSAS 30 contains requirements related to concessionary loans. Consequential amendments from IFRS 13 Fair Value Measurement and 2010) up to April IFRS 16 Leases. 2009) No Current Alignment Project N/A September 2007 – Consequential amendments from IAS 1 Presentation of Financial Statements June 2011 – Consequential amendments from Presentation of Items of Other Comprehensive Income (Amendments to IAS 1) December 2014 – Consequential amendments from Disclosure Initiative (Amendments to IAS 1)

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Table 3 – IPSAS and Equivalent IFRS—Detail IPSAS IFRS Status Main Public Sector Differences Relevant IFRS Amendments not yet Considered Intangible Assets

IPSAS 31 IAS 38 • IPSAS 31 uses different terminology. Active Alignment Project (January (Amended • IPSAS 31 includes a scope exclusion for the powers and rights Consequential amendments from IFRS 13 Fair Value Measurement, IFRS 2010) up to conferred by legislation, a constitution, or by equivalent means. 15 Revenue from Contracts with Customers, and IFRS 16 Leases. December 2008) • IPSAS 31 does not require or prohibit the recognition of intangible SIC 32 heritage assets. (Issued in March 2007 – Consequential amendments from Revised IAS 23 Borrowing March 2002) Costs No Current Alignment Project September 2007 – Consequential amendments from IAS 1 Presentation of Financial Statements N/A

Service Concession Arrangements: Grantor

IPSAS 32 IFRIC 12, • IPSAS 33 uses different terminology. Active Alignment Project (October (Amended • IPSAS 32 is applied to the grantor and IFRIC 12 Service Concession Consequential amendments from IFRS 13 Fair Value Measurement, IFRS 2011) up to Arrangements is applied to the operator. 15 Revenue from Contracts with Customers, and IFRS 16 Leases. November 2013) No Current Alignment Project

SIC 29 N/A (Amended up to November 2006)

First-time Adoption of Accrual Basis IPSASs

IPSAS 33 IFRS 1 • IPSAS 33 uses different terminology. Active Alignment Project (January (Amended • IPSAS 33 has different structure and requirements compared to IFRS 1. Consequential amendments from IFRS 15 Revenue from Contracts with 2015) up to June Customers and IFRS 16 Leases. 2017) March 2007 – Consequential amendments from Revised IAS 23 Borrowing Costs No Current Alignment Project September 2007 – Consequential amendments from IAS 1 Presentation of Financial Statements N/A June 2011 – Consequential amendments from Presentation of Items of Other Comprehensive Income (Amendments to IAS 1)

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Table 3 – IPSAS and Equivalent IFRS—Detail IPSAS IFRS Status Main Public Sector Differences Relevant IFRS Amendments not yet Considered Separate Financial Statements

IPSAS 34 IAS 27 • IPSAS 34 uses different terminology. Fully updated. (January (Amended • IPSAS 34 contains specific requirements for a controlling entity that is 2015) up to not itself an investment entity but which has an investment in a December 2014) controlled investment entity.

Consolidated Financial Statements

IPSAS 35 IFRS 10 • IPSAS 35 uses different terminology. Fully updated. (January (Amended • IPSAS 35 defines the term “binding arrangement”. 2015) up to • December IPSAS 35 contains more guidance on non-financial benefits. 2014) • IPSAS 35 does not require that a controlling entity, that is not itself an investment entity, shall consolidate all controlled entities.

Investments in Associates and Joint Ventures

IPSAS 36 IAS 28 • IPSAS 36 uses different terminology. Fully updated. (January (Amended • IPSAS 36 applies to all investments where the investor has a 2015) up to quantifiable ownership interest. IAS 28 (Amended in 2011) does not December 2014) contain a similar requirement. • Where an entity is precluded by IPSAS 29 from measuring the retained interest in a former associate or joint venture at fair value, IPSAS 36 permits an entity to use carrying amount as the cost on initial recognition of the financial asset.

September 2007 – Consequential amendments from IAS 1 Presentation of Financial Statements December 2016 – Annual Improvements to IFRS Standards 2014–2016 Cycle

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Table 3 – IPSAS and Equivalent IFRS—Detail IPSAS IFRS Status Main Public Sector Differences Relevant IFRS Amendments not yet Considered Joint Arrangements

IPSAS 37 IFRS 11 • IPSAS 37 uses different terminology. Fully updated. (January (Amended • IPSAS 35 defines the term “binding arrangement”. 2015) up • December IPSAS 37 contains additional illustrative examples that reflect the public 2014) sector context.

Disclosure of Interests in Other Entities

IPSAS 38 IFRS 12 • IPSAS 38 uses different terminology. Fully updated. (January (Amended • The definition of a structured entity in IPSAS 38 acknowledges the 2015) up differing ways in which control may be obtained in the public sector. December 2014) • IPSAS 38 requires that a controlling entity that controls an investment entity, and is not itself an investment entity, disclose information in respect of unconsolidated investment entities.

Employee Benefits

IPSAS 39 IAS 19 • IPSAS 39 uses different terminology. Fully updated. (July 2016) (Amended • IPSAS 39 contains additional guidance on public sector bonus plans. up • December In IPSAS 39 entities apply a rate that reflects the time value of money. 2015) September 2007 – Consequential amendments from IAS 1 Presentation of Financial Statements

Public Sector Combinations

IPSAS 40 IFRS 3 • IPSAS 40 uses different terminology and has a different structure and Active Alignment Project (January (Amended scope. Consequential amendments from IFRS 16 Leases. 2017) up to • IPSAS 40 classifies certain combinations as amalgamations. December Narrow Scope Amendments: • 2015) IPSAS 40 contains additional guidance on public sector specific October 2018 – Definition of a Business (Amendments to IFRS 3) transactions, for example tax forgiveness. No Current Alignment Project N/A

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Table 3 – IPSAS and Equivalent IFRS—Detail IPSAS IFRS Status Main Public Sector Differences Relevant IFRS Amendments not yet Considered Financial Instruments

IPSAS 41 IFRS 9 • IPSAS 41 contains additional application guidance to deal with Active Alignment Project (July 2018) (Amended concessionary loans, financial guarantee contracts entered into at nil or Consequential amendments from IFRS 16 Leases. up to nominal consideration, equity instruments arising from non-exchange December transactions and fair value measurement. No Current Alignment Project 2015) • In certain instances, IPSAS 41 uses different terminology from IFRS 9. N/A IFRIC 16 The most significant examples are the use of the terms "statement of (Amended up to July financial performance" and "net assets/equity." The equivalent terms in 2014) IFRS 9 are "statement of comprehensive income or separate income statement (if presented)" and "equity." • IPSAS 41 does not distinguish between "revenue" and "income." IFRS 9 distinguishes between "revenue" and "income," with "income" having a broader meaning than the term "revenue." • Principles from IFRIC 16, Hedges of a Net Investment in a Foreign Operation and IFRIC 18, Extinguishing Financial Liabilities with Equity Instruments have been included as authoritative appendices to IPSAS 41. The IASB issues IFRICs as separate documents.

Social Benefits

IPSAS 42 − Not applicable. Not applicable. (January 2019)

Financial Reporting under the Cash Basis of Accounting

Cash − Not applicable. Not applicable. Basis IPSAS (November 2017)

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RPG PS Status Main Public Sector Differences Relevant PS Amendments not yet Considered Reporting on the Long-Term Sustainability of an Entity’s Finances

RPG 1 − Not applicable. Not applicable. (July 2013)

Financial Statement Discussion and Analysis

RPG 2 PS 1 • RPG 2 uses different terminology. No current public sector amendments to consider. The IASB has an ongoing Management • project on Management Commentary, which staff will monitor. (July 2013) Commentary RPG 2 has different users. • RPG 2 has different present identification, presentation and content of financial statement discussion and analysis. Staff note: The IPSASB decided it was important to develop guidance on financial statement discussion and analysis specific to the public sector because of different users of financial statements in the public sector.

Reporting Service Performance Information

RPG 3 − Not applicable. Not applicable. (March 2015)

Agenda Item 1.5 Page 17 of 19 IPSAS–IFRS Alignment Dashboard IPSASB Meeting (September 2019) Table 5 – Summary of IASB Work Plan as at August 29, 2019 Standard-Setting Projects Maintenance Projects Research Projects Publication IFRS IPSAS / Publication IPSAS / Publication IFRS IPSAS / Title Title Title Date / PS RPG Date RPG Date / PS RPG Management H2 Accounting Policies and Accounting Estimates Q4 Business Combinations H1 ED PS 1 RPG 2 DPD IPSAS 3 DP - IPSAS 40 Commentary 2020 (Amendments to IAS 8) 2019 under Common Control 2020

Primary Financial Q4 IAS 1 IPSAS 1 Accounting Policy Changes (Amendments to Dynamic Risk Q4 ED DPD - IPSAS 3 CM - - Statements 2019 IAS 7 IPSAS 2 IAS 8) Management 2019

Rate-regulated H1 ED Q4 Q4 ED - - Amendments to IFRS 17 Insurance Contracts - Extractive Activities RR IFRS 6 - Activities 2020 Feedback 2019 2019

Availability of a Refund (Amendments to IFRS Financial Instruments with Q4 - - DPD IFRS 9 IPSAS 41 IFRIC 14) Amendment Characteristics of Equity 2019

IPSAS 21 Classification of Liabilities as Current or Non- IFRS H4 Q4 IFRS 3 IPSAS 1 Goodwill and Impairment DP IPSAS 26 current (Amendments to IAS 1) Amendment 2019 2019 IAS 36 IPSAS 40

Deferred Tax Related to Assets and Liabilities ED Pension Benefits that Q4 Arising from a Single Transaction - - RR IAS 19 IPSAS 39 Feedback Depend on Asset Returns 2019 (Amendments to IAS 12)

ED Q4 RR Q4 Disclosure Initiative—Accounting Policies - Provisions IAS 37 IPSAS 19 Feedback 2019 2019

Disclosure Initiative—Targeted Standards- Subsidiaries that are RR Q4 ED - - IFRS 10 IPSAS 35 level Review of Disclosures SMEs 2019

Fees in the ‘10 per cent’ Test for ED Q4 IPSAS 41 Derecognition (Amendments to IFRS 9) Feedback 2019

Publish IBOR Reform and its Effects on Financial IFRS - - Reporting—Phase 1 Amendment

IBOR Reform and its Effects on Financial ED Reporting—Phase 2 Lease Incentives (Amendment to Illustrative ED Q4 - Example 13 accompanying IFRS 16) Feedback 2019

Onerous Contracts—Cost of Fulfilling a 09/ DPD IPSAS 19 Contract (Amendments to IAS 37) 2019

Property, Plant and Equipment: Proceeds IFRS Q1 IPSAS 17 before Intended Use (Amendments to IAS 16) Amendment 2020

Subsidiary as a First-time Adopter ED Q4 IPSAS 33 (Amendments to IFRS 1) Feedback 2019

Taxation in Fair Value Measurements ED Q4 IPSAS 27 (Amendments to IAS 41) Feedback 2019

Agenda Item 1.5 Page 18 of 19 IPSAS–IFRS Alignment Dashboard IPSASB Meeting (September 2019) Table 5 – Summary of IASB Work Plan as at August 29, 2019 Standard-Setting Projects Maintenance Projects Research Projects Publication IFRS IPSAS / Publication IPSAS / Publication IFRS IPSAS / Title Title Title Date / PS RPG Date RPG Date / PS RPG Updating a Reference to the Conceptual ED - IPSAS 40 Framework (Amendments to IFRS 3) Feedback

Key: CM = Core Model; DPD = Decide Project Direction; DP = Discussion Paper; ED = Exposure Draft; RR = Review Research; PS = Practice Statement; | https://www.ifrs.org/projects/work-plan/

Agenda Item 1.5 Page 19 of 19